Manufacturers Need Electric Power Dependability
Randy Wolken, President & CEO
New York’s electric grid is sending a clear signal to advanced manufacturers and the public: the margin for error is shrinking, and the cost of inaction is rising.
The recent warning from the New York Independent System Operator (NYISO) is more than a seasonal reliability update; it’s a strategic inflection point for the state’s industrial future.
Entering the summer, New York’s grid will operate with a reserve margin of just 417 megawatts, one of the lowest in recent history. In practical terms, that margin represents the thin buffer between normal operations and system stress. For an advanced manufacturing economy that depends on precision, uptime, and energy-intensive processes, that buffer is uncomfortably narrow.
The challenge becomes even more acute under stress scenarios that are no longer hypothetical. In a three-day heatwave averaging 95 degrees, the grid is projected to face a shortfall of 1,679 MW. In more extreme conditions, approaching 98 degrees, the deficit could exceed 3,300 MW. These aren’t edge cases; they reflect a new climate reality in which peak demand events are both more frequent and more severe. For manufacturers, this translates directly into operational risk: unplanned curtailments, voltage reductions, and the potential for supply chain interruptions.
At the core of the issue is a structural imbalance between retiring capacity and replacement supply. Regulations finalized under former Governor Andrew Cuomo have accelerated the retirement of older, higher-emission peaker plants. While this transition aligns with long-term environmental goals, it has also reduced dispatchable capacity faster than new resources — particularly firm, on-demand generation — have come online. Simultaneously, the existing fleet is aging, and the pace of repowering or replacement hasn’t kept up with demand growth. We need to heed this warning and increase electric generation and the infrastructure needed to transport it. This means using an “all-the-above” energy approach.
For advanced manufacturing, energy isn’t just a cost input; it’s a foundational enabler of competitiveness. Semiconductor fabrication, precision machining, additive manufacturing, and electrified production systems all rely on stable, high-quality power. Even minor disruptions can halt production lines, damage sensitive equipment, and compromise product quality. This can cost an advanced manufacturer millions of dollars. In a sector where global competition is intense and margins are often tight, reliability is a strategic advantage.
The NYISO does have some tools to manage short-term reliability risks. Emergency operating procedures can secure up to 3,166 MW of additional capacity through a combination of demand response, voltage reductions, and emergency imports from neighboring regions. Industrial customers may be asked — or required — to curtail operations during peak periods. The system can also reduce exports and make last-minute power purchases.
However, these measures are, by design, temporary and reactive. Increasingly, grid operators are expressing concern about relying on them as a routine part of system operations. The effectiveness of emergency imports, for example, depends on neighboring regions having surplus capacity, an assumption that becomes less reliable during widespread heat events affecting multiple states simultaneously. Similarly, repeated reliance on industrial curtailment introduces uncertainty for manufacturers attempting to maintain consistent production schedules.
This is where the energy conversation intersects directly with the advanced manufacturing growth strategy. New York — and regions like Central New York and the Mohawk Valley in particular — are positioning themselves as hubs for next-generation manufacturing investment. Large-scale projects, including semiconductor fabs and advanced materials production, will significantly increase electricity demand while also raising the stakes for reliability. We risk losing out on these companies and the thousands of new, well-paying jobs they create.
The path forward requires a deliberate, balanced approach that aligns environmental objectives with economic realities. First, accelerating the deployment of new, reliable capacity is essential. This includes not only renewable energy but also firm, dispatchable resources that can operate when solar and wind outputs are low. Energy storage will play a critical role, but its scale and duration must match the demands of industrial loads.
Second, repowering existing assets should be a priority. Modernizing older plants with cleaner, more efficient technologies can provide a bridge between today’s reliability needs and tomorrow’s fully decarbonized grid. This approach preserves critical capacity while reducing emissions, avoiding the sharp reliability impacts of outright retirement. Using all energy sources available is what we must do if we want homes and factories to have electricity.
Third, grid infrastructure investment must keep pace with both supply and demand. Transmission upgrades, interconnection reforms, and regional coordination are necessary to ensure that power can flow where and when it is needed. For manufacturers, this translates into confidence that new facilities can be powered without delay or compromise.
Fourth, advanced manufacturers themselves are increasingly part of the solution. On-site generation, microgrids, and flexible load management can enhance both resilience and efficiency. Strategic participation in demand response programs — when structured predictably and transparently — can provide value to both the grid and the manufacturer. However, these measures should complement, not replace, a robust and reliable bulk power system.
Finally, policy alignment is critical. Energy policy, economic development strategy, and industrial growth objectives must be integrated rather than pursued in isolation. The goal isn’t simply to avoid blackouts, but to create an energy system that enables sustained investment, innovation, and job creation in advanced manufacturing.
The NYISO’s warning isn’t a crisis, but a clear call to action. It highlights the consequences of timing mismatches between policy, infrastructure, and market response. For New York to fully realize its potential as a leader in advanced manufacturing, energy reliability must be treated as a core economic asset.
In the end, the equation is straightforward: reliable, abundant, and strategically developed energy capacity is the foundation upon which advanced manufacturing growth is built. Without it, even the most ambitious industrial strategies will struggle to reach their full potential. With it, New York can position itself not only to meet demand but to lead in the next era of manufacturing innovation.